Multiple TRIP Career Paths
Is it right for me?
Being a trader, market/investments analyst, or risk manager requires the ability to make decisions quickly, and use strong reasoning and analysis skills. You should have a tolerance for risk and uncertainty, and be prepared to cope with both predictable and unpredictable outcomes. While an extremely enjoyable, challenging and lucrative career choice, those students wanting to be a part of TRIP must be willing to put in the time and effort to succeed. Most new graduates will start as an analyst and follow a variety of paths to manager or trader, depending on their personal goals and abilities. Any or all of these roles are possibilities.
Financial/Market Analyst
- Gather data on history and events that affect prices
- Keep up to date with current events that might affect the industry
- Create models and recommend trades
Risk Analyst/”Deals Desk” Analyst/Risk Manager
- Review daily trades and update traders and management on net long or short positions and daily potential to lose money
- Mark to Market positions for traders and the firm as a whole
- Evaluate and measure business risks and then take action to control for those perceived risks
- Often part of the compliance function, but also may be part of a specific business unit, such as securities trading desks or loan origination departments
- Must analyze data and take decisive action to safeguard the company from overexposure to market threats
Investment Analyst
- Tracks pricing movements, changes in the economic environment, and values of current investments.
- Use analysis to advise on current and future investment opportunities that may present themselves in the economy
- Studies information to draw conclusions about the future of a company or industry using macroeconomic or microeconomic indicators
Scheduler or Operations
- Responsible for insuring physical commodity trades can actually take place by getting the product and the logistics (pipe, train, ship, trucks) to the right place at the right time
- Interact with both own companies trade floor and customers’ schedulers and operations personnel
Futures Trader
- Traders may work for brokerage, asset management or energy firms and may be involved in hedging practices to minimize risk for the company
- Buys and sells equities or commodities (oil, natural gas, diesel, gasoline, electricity) to create value for the firm
- Use quantitative modeling processes and forecasting tools to assemble data used in the decision-making process; traders must then use this data to make informed decisions about the future of the markets.
Physical Trader/Origination Manager
- Relationship based
- Finding companies that have what you need or want what you have
- Constant interaction with other traders, schedulers, brokers, market analysts
- Dynamic, constantly changing markets
Other Common Paths
- Energy Private Equity or Investment Banking Firms
- Energy Consulting Firms